What are the total expenses of the issue as a percentage

Assignment Help Finance Basics
Reference no: EM13274949

Winston Sporting Goods is considering a public offering of common stock. Its investment banker has informed the company that the retail price will be $18 per share for 600,000 shares. The company will receive $16.50 per share and will incur $150,000 in registration, accounting, and printing fees. a. What is the spread on this issue in percentage terms? What are the total expenses of the issue as a percentage of total value (at retail)? b. If the firm wanted to net $18 million from this issue, how many shares must be sold?

Reference no: EM13274949

Questions Cloud

What is the book value of kingons assets today : If all the current assets were liquidated today, the company would receive $825,000 cash. What is the book value of Kingon's assets today? What is the market value?
Find the tension in the vertical main cable : A 300kg piano is being lowered into position by a crane while two people steady it with ropes pulling to the sides. What is the tension in the vertical main cable supporting the piano
What is the value of teldar to gekko properties : Teldar's post-merger beta is estimated to be 1.7, and its post-merger tax rate would be 35%. The risk-free rate is 6%, and the market risk premium is 5.5%. What is the value of Teldar to Gekko Properties?
What will be the beta of the new merged firm : what will be the beta of the new merged firm? There will be no additional infusion of debt in the merger.
What are the total expenses of the issue as a percentage : What are the total expenses of the issue as a percentage of total value (at retail)? b. If the firm wanted to net $18 million from this issue, how many shares must be sold?
Explain what mass of the percipitate is formed : An excess of aqueous AgNO3 reacts with 41 mL of 5 M K2CrO4(aq) to form a precipitate. What mass of the percipitate is formed
What is the average velocity for the entire trip : A commuting student leaves home and drives to school at an average speed of 41.0 km/h. What is the average velocity for the entire trip
Should the founding stockholders be pleased : Should the founding stockholders be pleased with the $40 they receive for PLEASE EXPLAIN!!! their shares?
Mechanized process or manual process to prepare the product : A distributor of prewashed shredded lettuce is opening a new plant and considering whether to use mechanized process or manual process to prepare the product

Reviews

Write a Review

Finance Basics Questions & Answers

  What will the portfolios new beta

using the proceeds to purchase another stock with a beta of 1.35. What will the portfolio's new beta be after these transactions? Round your answer to two decimal places.

  Recovering from service failure

Recovering from a service failure requires different strategies and methods for hotel serving business travellers than for restaurant serving family dinners. State whether you agree or disagree.

  Explain what is the corresponding implied forward rate

According to the pure expectations theory of interest rates, how much do you expect to pay for a one-year STRIPS on February 15, 2011? What is the corresponding implied forward rate

  Important information about the time value

John E. Nvestor is planning his own retirement plan and needs to create a savings plan for his retirement. He wants to receive $5,000 monthly at the beginning of his retirement age of 65 years.

  Determining the rate of return

The DMT Corporation is financed entirely with equity. DMT has a beta of 1.20 and current risk-free rate of 9.5 percent. If the expected market return is 14 percent,

  Computation of effective annual yield and bond value

Computation of effective annual yield and bond value and What is the yield of the 5-year bond expressed as an effective annual yield?

  Estimate the current price of the stock

BioScience,Company, will pay a common stock dividend of $3.20 at the end of theyear. The required return on common stock is 14%. The firm has a constant growth rate is 9%.

  What is its yield to call ytc

what is its yield to call YTC? Hint set up the cash flows on a timeline. if the bond is called, in vestors will receive interest payments for five year and then receve $1,050 $ 1,000 in principal and call premium of five years. the YTM on this cas..

  What would the percentage change in price of bond dave be

If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Dave be then?

  Fundamentals of financial accounting

Using the financial statements of Landry's Restaurants located in Appendix A of the text, Fundamentals of Financial Accounting 1st ed., by Phillips, Libby, and Libby, calculate the given ratios for 2002 and 2003:

  Is there a pattern here

what percent of his wealth should be in the risky portfolio and what percent should be in the risk-free asset? If he wants a beta of 0.75? I he wants a beta of 0.50? If he wants a beta of 0.25? Is there a pattern here?

  Exercise of significant influence

How is the ability to significantly influence the operating and financial policies of a company normally demonstrated?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd